Imagine buying a house in 2008, when the prices have barely dropped. And, everyone thought that we had hit the bottom. The giant companies and firms received tarp money and were on their way to recovery, or so we thought. People were buying houses like hotcakes again. They drove up prices by about 10% from asking price. In the midst of all this was me. I was just a regular consumer that wanted to buy a house using an agent. Every house we liked, we were getting out bidded. It was pretty frustrating that people can buy it for so much more than what I thought it was worth. It was also due to them getting the house and not me. But I have no regrets because I was able to find a great home for the right price. That was because I did my research with only limited access to information and came to the conclusion that it was a good buy. Now with more access to resources, I know its a great buy!!
It is Summer 2010 and prices have really fallen and expected to fall even more because of the expired government incentives. A lot of the homes that were purchased in 2008 have gone into default. The reason, in my opinion, is that some of them could no longer afford it due to the economy while the rest are cutting their losses by walking away. I still have my home and do not see any losses on it now or in the coming years. That is what I love about real estate.
I still see people making the same old mistakes. They think that a comparison or CMA is enough. Even with a so-called friend who did not care enough to ask me is feeling remorse. Their home is not worth as much as they purchased the house 4 months ago. I could have told them that but they did not let me know they were going to buy a house. The house one street over was much newer with an additional 500 square feet of living space was selling for the same price. Why didn't anyone catch that? Well, I did. And I am pretty sure the new owner of that house did. But no one is going to work as hard on finding a house as the buyer. And the buyer only knows as much as the information they receive. So don't regret on not getting a deal.